* Canadian dollar at $1.3393, or 74.67 U.S. cents
* Bond prices mixed across the maturity curve
TORONTO, March 6 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Monday after falling more than 2
percent last week, but was trading in a narrow range ahead of
upcoming domestic trade and employment data.
Recent losses for the loonie came as Federal Reserve Chair
Janet Yellen cemented the view that the Fed will raise interest
rates at its March 14-15 meeting.
In contrast, the Bank of Canada held rates steady on
Wednesday as it stayed focused on the "significant
uncertainties" facing the economy, including the policies of
U.S. President Donald Trump.
Policy divergence will pressure the loonie over the coming
months, a Reuters poll predicted.
At 9:36 a.m. ET (1436 GMT), the Canadian dollar was
trading at C$1.3393 to the greenback, or 74.67 U.S. cents,
slightly weaker than Friday's close of C$1.3379, or 74.74 U.S.
cents.
The currency's strongest level of the session was C$1.3373,
while its weakest was C$1.3414. On Friday, the loonie touched a
nearly two-month low at C$1.3437.
Investors will be watching to see if Canada can post its
third monthly trade surplus in a row in January, when the data
is released on Tuesday. The focus will also be on exports, where
volumes were disappointing in January.
Canada's employment report for February is due on Friday.
Prices of oil, one of Canada's major exports, dipped as the
market weighed lower growth targets in China and Russia's
compliance with a global deal to cut oil output.
U.S. crude prices were down 0.09 percent at $53.28 a
barrel.
Canadian government bond prices were mixed across the yield
curve, with the two-year up 1.5 Canadian cents to
yield 0.757 percent and the 10-year flat to yield
1.7 percent.
(Reporting by Fergal Smith; Editing by Nick Zieminski)